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New Final Regulations Revise Rules on the Application of Section 163(j) to CFCs

As amended by the Tax Cuts and Jobs Act (TCJA), section 163(j) of the Internal Revenue Code (the Code) provides that a taxpayer’s interest expense is deductible only to the extent of the sum of: (i) the taxpayer’s interest...more

Proposed Regulations Would Conform Subpart F High-Tax Exception to GILTI High-Tax Exception

On July 20, 2020, the US Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) issued proposed regulations (REG-127732-19) (the 2020 Proposed Regulations) that would conform the historic Subpart F...more

Final and Proposed BEAT Regulations Provide Some Relief

Final and new proposed regulations on the base erosion anti-abuse tax (the BEAT) under section 59A have been issued by the United States Treasury and IRS, providing clarifications and some relief tied to inbound liquidations...more

International News: International Tax

Health Care Private Equity Investments in India - A flurry of recent private equity (PE) investments in the Indian health care sector demonstrates strong investor appetite and opportunities. India is one of the fastest...more

Deductible Payments to CFCs Can Result in Exorbitant BEAT

New section 59A imposes a minimum tax on domestic corporations with substantial amounts of deductible payments made to related foreign persons (referred to as the base erosion and anti-abuse tax, or BEAT). The BEAT can apply...more

Managing Separate GILTI Calculations

The 2017 tax act expanded Subpart F to require an inclusion in income of “global intangible low-taxed income” (GILTI) of a controlled foreign corporation (CFC). This is generally the amount of a CFC’s income in excess of its...more

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